INVESTMENT IN UNCONSOLIDATED REAL ESTATE JOINT VENTURE

3 Months Ended

Mar. 31, 2026

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN UNCONSOLIDATED REAL ESTATE JOINT VENTURE

In February 2026, the Company, together with the affiliate co-lender to the San Antonio Loan, formed 123 Lex Ave Hotel Holdings LLC (the “Lex Ave JV”) in proportion to their respective interests in the San Antonio Loan.

In March 2026, the lenders exercised their rights to foreclose on the hotel property that served as the underlying collateral for the San Antonio Loan. Upon foreclosure, legal title to the property was obtained by the lenders, and the property was contemporaneously contributed to the Lex Ave JV. Upon foreclosure, the Company recognized real estate owned (“REO”) at the lesser of the carrying value of the San Antonio Loan and the fair value of the underlying collateral. The Company’s contribution to the Lex Ave JV was recorded at the fair value of the contributed REO of approximately $24.6 million. The Lex Ave JV acquired the hotel property through a credit bid equal to the aggregate unpaid principal balance of approximately $40.6 million.

Following the contribution, the Company holds a 65.0% ownership interest in the Lex Ave JV. The Company’s investment in the Lex Ave JV was initially recorded based on its proportionate share of the fair value of the contributed net assets. No gain or loss was recognized upon foreclosure and contribution, as the transaction was accounted for as an exchange of the loan for an equity method investment.

Activity in the Company’s investment in the Lex Ave JV during the three months ended March 31, 2026 consisted of the initial contribution described above. There were no additional capital contributions, distributions, or equity in earnings (loss) during the period.

The formation of the Lex Ave JV and related contribution resulted in the derecognition of the San Antonio Loan from the Company’s consolidated balance sheet.

The following table summarizes the Company’s investment in unconsolidated real estate joint ventures as of March 31, 2026 and December 31, 2025:


Entity	Date Formed	Ownership %	As of March 31, 2026		As of December 31, 2025

123 Lex Ave Hotel Holdings LLC	2/27/2026	65%	$	24,635,000	$	—